After cutting $175,000 from the initially proposed budget, the Lancaster’s Town Board approved the 2009 budget. In the eleventh hour and by “Suspended Resolution”, the board cut another $41,254 from a budget proposal they were considering passing Monday evening.
Whereas the tentative budget proposal called for a 3.42% increase in the tax rate for Town of Lancaster residents, the new tax rate increase is 2.45%. Residents will be paying $22.71 per hundred thousand dollars of assessed property valuation instead of $35.71. For a house assessed at $100,000 in the town outside the villages of Lancaster and Depew, the tax bill for 2009 would go up by $22.71, from $926.73 to $949.44.
For a home within the Village of Lancaster assessed at $100,000, the tax bill would drop $16.29, from $598.73 to $582.44. And in the Village of Depew, that same house would fetch a tax bill of $241 compared with last year’s $244.
Although the town cut $175,000 from the budget, spending (appropriations) was cut by $126,343 from a proposed budget of $27.10 million to $27.58 million; from an increase of 4.8% in spending to 4.3%.
Although modifications were made in the Townwide General Fund, the Highway Fund and Special Districts, the Police Fund went untouched. Except for a change to the Town Attorney salary, modifications to salaries, longevity pay, overtime pay, equalization pay, clothing allowances were absent.
Suspended Resolution
Declaring “We are all in a crisis mode,” Councilman Ron Ruffino offered a resolution that cut another $41,254 from a budget that had already had modifications made.. Ruffino’s resolution:
Townwide General Fund
Changes the salary for Town Attorney from an increase of $10,000 to an increase of only 3%, a decrease of $8,800. (At the recent budget public hearing, several residents opposed the part-time Town Attorney’s salary increase of 25% - from $40,000 to $50,000.)
Eliminates the Health Insurance buyouts for Councilmen for a budget reduction of $15,800.
As a result of the two aforementioned changes, the Social Security payroll tax decreases by $1,882.
Eliminates Health, Dental and Optical Insurance coverage for Councilmen for a total reduction of $14,772.
Bond Anticipation Note Interest – There was a net reduction in interest costs of $3,620 on the notes that were sold November 5 due to a lower net interest rate than what was in the original budget.
Total Townwide General Fund reduction in the amount to be Raised by Taxes is $44,874.
Other budget cuts
Cuts that were already made by the board to the tentative budget and were scheduled to be disclosed Monday were the following:
Highway Fund
Eliminated the appropriation for the purchase of a small dump truck for a reduction of $40,000.
Bond Anticipation Note Interest – There was a net reduction in interest costs of $957 on the notes that were sold November 5 due to a lower net interest rate than what was in the original budget.
Bond Anticipation Note Principal – The budgeted principal payment was reduced by $2,500.
Total Town Highway Fund reduction in the amount to be Raised by Taxes is $43,457.
Consolidated Water District
Bond Anticipation Note Interest – There was a set reduction in interest costs of $87,012 on the notes that were sold November 5 due to a lower interest rate than what was in the original budget.
Also contributing to the reduction in interest cost was the fact that this year’s borrowing was reduced by $1 million in principal. This amount is not expected to be needed prior to the next scheduled borrowing in July 2009.
Total Consolidated Water District reduction in the Amount to be Raised by Taxes is $87,012.
Grand Total Reduction in the Amount to be Raised by Taxes is $175,343.
While residents commended the board for their efforts in trimming the budget, they also voiced that more cuts could have been had.
PART II: Insurance coverage and buyouts
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